Canadian income tax & charitable donations: How much is income tax reduced by donations?

Question

In Canada, how much is income tax reduced by charitable donations?

When filing, are there any special requirements to qualify for the deduction or credit?

Answer 1

First, you file using federal schedule 1 and the corresponding provincial form.

Federally, the credit is a dollar for dollar reduction of the tax payable (it is a non-refundable tax credit). For federal tax, the credit is 15% of the first $200 of donation and 29% on all amounts over $200. Be aware that the maximum you can claim is limited to 75% of your net income (the excess can be carried forward 5 years).

See the article at http://blog.taxresource.ca/charitable-donation-tax-credit/